14 January 2008

CC clears video game tie-up

Following in-depth investigation, the UK Competition Commission has cleared the completed acquisition of Game Station Ltd by Game Group PLC. Both parties are specialist retailers of video game hardware and software (new and ‘pre-owned’). Despite taking the view that the parties were closest competitors, the CC found that the merged firm would face effective competition from Internet retailers, supermarkets, generalist high street retailers and independents. While fewer alternative retailers sold pre-owned games and engaged in trade-ins, the CC noted that several competitors were expanding rapidly, consumers were increasingly making use of alternative retail channels, and that competition from new games set an effective cap on the price of pre-owned products. RBB advised Game Group during the CC’s investigation, alongside Clifford Chance.

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